Agreement Between China And India
(1) Traders from both countries who are known to be engaged in ordinary and specific business activities between the Tibet region of China and India, their wives and children who depend on them for their living, and their companions shall enter India or the Tibetan region of China for the purpose of trade, as the case may be, in accordance with the procedures for issuing certificates duly issued by the local government of their own country or its duly authorised agents, which shall be checked by the border inspection posts of the other Party. A warming trend in relations was facilitated by Rajiv Gandhi`s visit to China in December 1988. The two sides issued a joint communiqué stressing the need to re-establish friendly relations on the basis of the Panchsheel. India and the People`s Republic of China agreed to reach a “just and reasonable solution while seeking a mutually acceptable solution” to the border dispute. The statement also expressed China`s concern over the unrest by Tibetan separatists in India and reiterated that anti-China political activities are not tolerated by Tibetans living abroad. Rajiv Gandhi has signed bilateral agreements on scientific and technological cooperation, direct air links and cultural exchanges. The two sides also agreed on annual diplomatic consultations between foreign ministers, the establishment of a joint committee for economic and scientific cooperation and a joint working group on borders. The latter group is expected to be led by India`s foreign minister and China`s vice foreign minister. Jawaharlal Nehru justified his vision of a “New Asia” on the friendship between Asia`s two largest states; his vision of an internationalist foreign policy, guided by the panchsheel (Five Principles of Peaceful Coexistence) ethic, which he initially believed was shared by China. It is remarkable that Bhimrao Ambedkar was surprised that the Nehru took the Panchsheel seriously while Acharya Kriplani had said that the panchsheel was “born in sin”.  Nehru was disappointed when it became clear that the two countries were in conflict of interest in Tibet, which had traditionally served as a buffer zone. Bilateral trade between China and India reached $89.6 billion in 2017/18, with the trade deficit in China`s favor expanding to $62.9 billion.  In 2017, the volume of bilateral trade between India and China amounted to $84.5 billion.
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